The danger of overkill

28.11.2011                      02.Kislev. 5772

Wirtschaft:

The danger of overkill

Deutsche Bank's Dan Harverd says there is plenty of housing available, and freeing up more could lead to a crisis.

Bank of Israel head Stanley Fischer isn't the only one worried that a glut of construction could gut housing prices and beyond. It's happened elsewhere in the world.
Seven months ago, the head banks analyst at Deutsche Bank Israel, Dan Harverd, wrote a column for TheMarker in which he warned against overkill. If the state suddenly frees up too much land for development, he warned, the result could be a too much construction, and a collapse in home prices, leading to a real estate industry crisis and wider economic trouble….